In March of 2010, I was sitting in a bankruptcy attorney’s office. After 6 years of pursuing my life-long dream of being a professional marital arts instructor and gym owner, I was over extended. And it wasn’t just that I was several tens-of-thousands of dollars in debt and had negative cash flow…
16-hour work days had me over extended on my energy levels. With all of my attention focused on trying to save my business, I was over extended in my relationships. And constantly trying to act like everything was fine in front of my clients and employees when things were really in the toilet had me over extended with my integrity. I was bankrupt in ways far beyond my finances.
But just over a year later, things seem to be leveling out. I now work from home as a professional blogger, largely in support of the 31 Day Fat Loss Cure. The past year was tough – probably the toughest I’ve experienced to date – but as I look back, I can’t help but appreciate the lessons learned. Below are 7 things that I learned from going bankrupt:
1. Follow your dreams and the money will follow is bullshit. There is so much more to it than that. You can have the biggest dream, but you damned sure better have rock-solid business procedures in place to back it up. I flew by the seat of my pants for the first three years I was in business… and then it was too late to play catch up. Have your procedures in place for sales, marketing, and customer service before you ever open the doors to your “dream” business.
2. Closing the dream doesn’t mean closing the message. The internet is an amazing thing. Seriously, I marvel at it’s infinite scalability. I had an 8,000 square foot storefront facility. In all of it’s monstrosity, at maximum capacity I could maybe serve 600 people. By comparison, the 31 Day Fat Loss Cure has sold over 15,000 copies in less than a year. The Rebel Strength Guide sold over 250 copies in the first week. I can help more people with the same or similar messages that I conveyed in my storefront business with far less overhead and time on the clock via the internet.
3. Lack of money is lack of power. Over the past year, I stacked envelopes in a processing plant for barely above minimum wage to make ends meet. I sold my old books and DVD’s for grocery money. I watched my dog claw at his swollen infected ears because I could not afford to take him to the vet. These humbling experiences were the result of not having the cash on hand to meet even my basic needs. Lack of money is lack of power – don’t doubt it.
4. Credit cards are a high-risk game. I financed the start up costs of my business with credit card debt. My thought process was that I didn’t want to wait – with the salary I was making as a government lawyer at the time it would have taken me forever to save up enough money to open the doors. But as business expanded, so did my overhead, and I started using credit to cover monthly expenses. The plan was that business would eventually pick up to the point where I could repay the debt, but that was a sucker’s bet. If you use credit cards, I suggest checking out my buddy Steve Kamb for tips on turning them into frequent flyer miles machines. Personally, I never want to have another credit card.
5. Once you go Biz you can never go back. My first line of thought after going bankrupt was, “well, time to get a job.” And try to get a job I did. Literally hundreds of applications and resumes distributed… and almost no interviews. The only interviews I had were for police officer jobs where receiving an interview is mandatory if you pass the initial entrance exam requirements. But the whole time I was looking for a “job”, the entrepreneurial bug kept scratching at the back of my brain. I accepted two independent contractor positions (one as a private investigator and one as an office manager), neither of which lasted very long. It wasn’t until I pursued online business full-time that my financial footing was regained.
6. They can’t eat me. “They can’t eat me”, was a phrase an old Army buddy of mine used to say. This guy was always in trouble – drunk and disorderly, late for formation, losing his equipment – and so he was always being punished. The Army docked his pay, busted him down in rank, had him dig useless fox holes in the blazing sun, and eventually threw him out. And with each punishment administered, he just grinned and said, “they can’t eat me.” So it became my mantra. . . when creditors called or the bankruptcy hearing officer sent me home because I didn’t have my social security card, I just thought “they can’t eat me”. It was my reminder that things could always be worse. . .
7. Things can always be worse. Less than two weeks after I closed the doors to my business, my home was burglarized. They stole my big screen television (might have been a blessing in disguise), various other electronics, and $1,100.00 cash that my mother had given me to live on while I looked for a job. But the only thing I cared about was my dog.
When I saw my kitchen window had obviously been a point of entry for someone, I cracked open my door and yelled for Coda. There was no response – no scurry of his nails across my wood floors, no bark of relief, nothing. I thought either he ran off during the crime or the burglars killed him. Thankfully, the burglars had just locked him in a bedroom and Coda was unharmed. But that moment of fear that my dog was gone let me know what really mattered to me. Bankruptcy was nothing – I still had a roof over my head, my health was good, and my dog was fine. All was well in my world.
Bankruptcy was definitely a low point in my life, but it is far from a unique experience. Henry Ford, Mark Twain, and Abraham Lincoln all filed bankruptcy. And I’d say that’s not bad company to keep, but Benedict Arnold and John Wayne Bobbitt also went bankrupt. Oh well, at least I still have Coda.
Have you endured financial setbacks that helped you learn life lessons? What other trials of life have been great teachers? Share your thoughts in the comments below.
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I've been helping people lose weight and get fit since 2001. To learn more about my simple approach to health and fitness 
Vic: Really great looking blog. Well done. This is a time when so many people are doing such great things, notwithstanding setbacks. I admire what you’ve done. So good of you to share what you’ve learned. Susan
@ Susan: Thanks so much!
@ Daniel: Hang in there, man. They can’t eat you!
@ Danny: Damn… a quarter of a mil is no joke! Good to see you have rebounded with Firepole Marketing.
It’s encouraging to hear what you went through, and see where you’re at today. Thanks for sharing!
My wife and I have been married for almost 11 years now and early on we racked up a TON of credit card debt, plus a car loan. We spent the better part of 6 years busting our asses (working 2 and sometimes 3 jobs) to pay it all off. With just barely $500 in credit card balances left to pay off everything else has been paid off.
All of that hard work, money management, sacrifice and determination paid off in an unforseen way, because a month ago I was let go from my job.
Really great post, Vic, thank you for sharing this with us. It definitely struck a chord with me – when my educational technology start-up crashed and burned a few years ago, I got stuck with about a quarter of a million dollars of debt, so I can completely relate. But, like you said, they can’t eat me!
Great post and life lessons, Vic – while I haven’t gone bankrupt yet, things have been pretty close to the wire at times especially in my younger years.
Being left with a backpack and under $100 in the bank before getting my first paycheck in London was a salutory lesson in making every penny count…
@ Dave: A backpack and less than $100 in London sounds crazy!
@ Sarah: Awww, thanks pretty girl.
@ John: Many thanks for your kind comments.
@ Caleb: Yes, Failure = Feedback!
Nice to see your blog up! Whatever financial disasters may come your way, you can take solace in the fact that you are an amazing person who really cares about the people (and puppies) in his life.
Hi Vic. Great post! I was unaware that you have been going through all this stuff this past year. Then I was over at Nerd Fitness this AM and that’s where I found out about this website. Congratulations, man! I am really excited for you and I just want to wish you the best. Your website looks great, as good as a bunch of 6 pack abs anyday. I got your hard copies in the mail today from 31 DayFatLoss Cure, and I could not be happier right now. And I love the phrase “congruency between thought and action.” As a therapist, I have to tell you that this is exactly what I tell people, in so many ways, all day long. Right now I am nursing some injuries, and actually using the section in the fat loss cure book which is for seniors who have some injuries, getting the diet back on track, etc. Then its back to the bodyweight workouts. The best of luck always, to you in your endeavors. Y ou are really helping some people and I am one of those. An honor. Thanks again, Vic. John Tully
Thank you for sharing your story with extreme transparency Vic.
I view bankruptcy a necessary evil for certain situations. The key for someone to rise out of it with a better life is use the experience as a lesson and not to dwell on it as a failure.
Failure = feedback. I know you’ll be better from having gone through this Vic and I’m excited to see what you are up to next.
Hey Vic…Congrats on your new and great-looking blog…!
And great opening post, life-lessons and raw truth straight-up! You know how the saying goes, “what doesn’t kill you will make you stronger”…there’s definitely truth in that.
Congrats again & best of luck in your new endeavors
First up, great post! Overcoming challenges, understanding where you zigged when you should’ve zagged, and using that to debug your life are all pretty awesome things.
In my case, I’ve spent most of the last three years asleep, quite literally. I finally received a diagnosis (idiopathic hypersomnia) and treatment in March this year. The symptoms have been ongoing for the last 14 years, although only reached their peak in the last 3.
It’s taught me a lot about what I value, and how to work with very sharp limits on what I can and cannot do. It’s also taught me how to respect myself for achieving what I can in any given day. It has given me the opportunity to return to study and pursue a new career in a new field. It has given me a deeper appreciation, respect and love for my husband, who has been steadfast in his encouragement and love in this very difficult time. It’s taught me to value my health, and to use every opportunity I have to improve it, as it’s a lot easier to bounce back when you start from a position of good health.
I’m currently training towards being able to do parkour, and have high hopes to get there by the end of the year. Starting from such a low point, it is a challenge. Every time I can do one more rep, increment a weight, I feel accomplished and closer to my goals. You and Steve Kamb are inspirational.
Thanks for sharing your story. And good luck with the parkour!
Vic,
I just read this now. Very inspiring bro and your stats on business success is impressive. I believe these humbling moments have built your character, readying it for great success
All the best,
Caleb
Thanks, Caleb. I definitely feel like the previous trials have readied me for future success.
I absolutely adore your site! You aggressive me as able-bodied as all the others actuality and your broiled is absolutely nice.
Bankruptcy
Hi Vic,
As I said already in my comment on your interview with Danny from Firepole Marketing, it’s about learning a lesson and moving on. It’s great to see you’re doing just that.
Many of us have hit at a low point in their lives and many of us are now in an entirely different place because they had the courage to move on.
I wish you all the best,
Wim
Thanks, Wim. Yes, we must move on. And we damned well better move on with lessons learned.
Hi Vic!
I liked the point #7 the most: “Things can always be worse.”
It’s great to realize that even after all those events, you were still able to appreciate very important things on your life and kept things positive!
Cheers,
Timo
Hi, Vic, I came to your post through Tyler at Advanced Riskology. I LOVE “They can’t eat me.”
Thanks! I can still see the ornery smile on that guy’s face when I think about him saying it.
This article is superb. Felt familiar situations resounding while reading it. I landed on your site via your guest post on Joshua’s site. Your site is wonderful.